Corey Johnson Prepares Lie Sandwich; Makes CD 3 Eat It

At last night’s District 3 candidate forum, Corey Johnson took issue with being labeled the candidate of “political insiders” by his opponent Yetta Kurland.  “Does anyone here really think Jerry Nadler is a political insider?” asked Johnson, referencing one of his prominent endorsers.  “Jerry Nadler is a progressive Democrat.”

If Johnson believes that a Manhattan ten-term congressman isn’t a political insider, then he is most likely stupid or cynical.  He doesn’t strike me as stupid, so let’s go with cynical, or maybe just cunning.  

Throughout the debate, which mostly covered development-related issues, when Johnson wasn’t lying, he was tendentiously parsing half-truths.  I will concede that he was probably not lying when he said that his mother was a lunch lady, that he is gay, and that he has in fact received the political endorsements that he says he has received.  Virtually everything else, based upon my close scrutiny of his record, is in doubt.

For instance, when asked by Kurland why, if he is in fact proud of his work for real estate company GFI Development, he had asked the Gay Center to remove his bio from their website, Corey Johnson answered that the bio contained “incorrect information.”  He then, in a non sequitur, claimed that the item had come from this blog, which he accused of “saying false things” about him.

Here is the offending bio, from the archived version of the Gay Center website:

Corey Johnson is currently employed by GFI Development Company as Director of Government Relations and Community Affairs, where he has worked with the New York City Council, Mayor’s office and a variety of New York City Agencies. He has overseen the re-zoning of a large mixed-use project and managed the GFI’s efforts to revitalize neighborhoods surrounding their developments. Prior to his work at GFI, Mr. Johnson directed and shaped political and communications strategy on a variety of mayoral, gubernatorial and presidential campaigns in New York. He has served on the media-strategy team of the Gay and Lesbian Alliance Against Defamation (GLAAD) and worked in the finance department of the Democratic National Committee. Mr. Johnson has been quoted in The New York Times, New York Daily News, The Boston Globe and San Francisco Chronicle. He has also appeared on CNN, MSNBC, ABC News, NPR, Sirius-XM Satellite Radio and NY 1 to offer political commentary and insight. Mr. Johnson is also the Vice-Chair of Manhattan Community Board 4, where he co-chairs the Chelsea Land-Use Committee and serves on the Business, Licenses and Permits Committee. He is the Political Director for Towleroad.com, which is the highest-trafficked gay and lesbian blog on the Web.

Everything in this blurb corresponds with what Johnson acknowledges to be true about his work history.  The only consistent explanation for why he called the Gay Center and asked them to remove the item is that he was trying to cover up his association with GFI.  

Regarding this blog, incidentally, I challenge the Johnson campaign or anyone else to identify any false claims I have made about him.

Next, Johnson accused Kurland of lying about his current association with GFI, insisting that his employer, the Sydell Group, is not an offshoot of GFI, nor is it connected with the company in any way.  Corey Johnson identified the Sydell Group as the manager of two hotels outside of New York, and insisted emphatically that it is not connected to GFI.

Here is a little item from the New York Times from March 10 of this year:

The Local Stop column in some editions on Feb. 24 about NoMad, the area north of Madison Square, referred imprecisely to the development of the Ace Hotel in the area. The Ace, which opened in 2009, was developed by GFI Development, then a partnership between Sydell Partners L.L.C. and Allen Gross of GFI; it was not developed only by Sydell Partners L.L.C., which has since become the Sydell Group.

This blurb was a correction to an earlier article, and was thus presumably rigorously checked and re-checked.  So unless the Times fact checkers are complete incompetents, GFI Development and the Sydell Group are, contrary to Corey Johnson’s denial, closely related.

Here is an article from The Real Deal describing the fallout between the head of the Sydell Group and his partner, the head of GFI.  There is no question in the mind of the writer that the two companies operated in a tight partnership, with joint ownership and management of assets.

Here is a press release from the Sydell Group itself, describing its close partnership with GFI.

So we are left with two options if we want to preserve the idea that Corey Johnson is telling the truth about the Sydell Group: either he is very stupid, or everyone else in the world is wrong.  But if we reject the supposition that he must be telling the truth, then everything becomes clear.  That’s the problem with extremely convincing liars: the way they say things sounds so sensible that we want it to accord with reality, even when it doesn’t.  

Corey Johnson took hairsplitting to the level of the angstrom when the conversation turned to the question of 470 Vanderbilt, a GFI development in Brooklyn.  At an earlier community forum, Johnson took credit for having forced the developer to increase the level of affordable housing to be built from 20% to 26%.  He then congratulated himself for having even provided for affordable two-bedroom apartments to be built, all for the benefit of the families of Brooklyn.

Leaving aside the fact that the Council Member involved in the negotiations on the other side of the table from Johnson, Tish James, said flat out that she has no recollection of Corey Johnson’s role in securing the higher percentage, no housing of any sort was built at all at 470 Vanderbilt.  There is an office building at the site, and a parking lot where the housing was supposed to be.

Last night Johnson insisted that he had never said that the housing was built, only that he had negotiated a restriction in the event that housing were to be built.  Forgive me if I fail to follow Corey Johnson into his Thomistic musings on the nature of the unbuilt, but the lot is commercially zoned, so his imaginary restrictions have been violated in any case.  Don’t take my word for any of this, listen to the man himself talk about his fantasy building, and then decide if he was talking about restrictions or about actual housing.

Corey Johnson is a handsome, charismatic guy, and it sounds like he has worked hard on the community board.  He speaks clearly, has a nice voice, and unlike Yetta Kurland, he doesn’t get visibly nervous.  The debate last night was kind of like Kennedy-Nixon: Johnson won if you watched it on television, but everyone who listened to it on the radio said it was hands-down Kurland’s victory.

The only problem with Corey Johnson is that he lies.  He figures he can lie his way into office, and by then it won’t matter.  But the problem with lies, even if they never catch up to you (cf. Bill Clinton), is that lying is a terrible habit, habit forms character, and character is destiny.

Affordability and Development

Two articles I wrote are up at City & State and Gotham Gazette. 

First, Defining Affordability Down: 

Who opposes affordable housing? For Democratic candidates, supporting affordable housing is like coming out for better schools or equal rights for women: It is so uncontroversial and obvious that it is almost beside the point. But what does affordability really mean in a city as obsessed and driven by real estate as New York?

Read the rest here. 

Second, Development and Its Discontents: 

Manhattan’s 3rd City Council District, covering the West Village, Chelsea and Hell’s Kitchen, has been altered immeasurably in the last decade. Depending on your perspective, the last 12 years under the leadership of Mayor Michael Bloomberg and City Council Speaker Christine Quinn, the district’s current representative, have either destroyed the area, or remade it into a fabulously exciting international destination. Or both. 

Read the rest here. 

Gay Center Cheerful: "Corey Asked Us to Do It"

There was never any intention to turn this blog into a constant revelation of the misdeeds of CD 3 candidate Corey Johnson's campaign.  But as Nixon showed us, when you try to cover things up, you usually make things worse for yourself.  So don't blame us when it is Corey Johnson cutting off the Hydra heads of his own corruption.

Last month, City Council Watch began looking into Corey Johnson's actual work history, which was not given in any detail in his campaign material.  We found a fairly extensive resume on the website of the LGBT Center, where Johnson had participated on a panel in 2011.  The bio discussed Johnson's work for real estate developer GFI.  

We called the Johnson campaign and asked a few questions about GFI.  When we returned to the Gay Center website, we found that Corey Johnson's bio had been removed entirely, though there was a cached version available.  See here and here for comparison's sake. 

The Gay Center is a non-profit that receives City funds in the hundreds of thousands of dollars annually, and by law is forbidden to do any political work on behalf of an electoral campaign.  We wondered about how the scrubbing of Johnson's bio was authorized, so we called Mary Steyer, the Director of Communication for the Center and asked her about it. 

Mary Steyer, who could not be more helpful, looked into the matter and called us back.  "I investigated the issue and have an answer," she announced cheerfully.  "Corey Johnson called the webmaster and asked him to remove the bio."   

Mary Steyer was puzzled when we suggested that helping a prominent candidate for office bury information about himself might not be in the mission statement of a major non-profit organization, and didn't see what the issue was.  "He said the info was outdated, and it didn't strike us as odd."

 (Let me point out that the Gay Center, on 13th Street, is in the 3rd Council District, where Corey Johnson is running.  The Center receives major allocations from Corey Johnson's advocate Speaker Christine Quinn.  It was until recently headed by Mario Palumbo, Jr., a Johnson contributor and partner at Millennium Partners, a highly-connected real estate development firm.  The Gay Center is a large and politically-connected non-profit group in the middle of the West Village.  I imagine someone on the staff there must have an idea about what constitutes best practices when it comes to dealing with political campaigns.)

On the other hand, as we have said before, we aren't campaign law experts.  Maybe one of you is.

Picturesque This!

From my new column at City & State: 

The City Council funding process is so intentionally opaque, so jackstraw and piecemeal that it should not even be a surprise to find the Members from Kew Gardens or the Upper West Side sponsoring $75,000 allocations for the High Line.  Yet even one of the sponsoring council members in question was surprised to discover that she had been credited, in the 2013 FY Budget, with such an unusual allocation.  CM Gale Brewer, asked why she had given money to the High Line, which is not in her district, flatly denied the designation, insisting, “First time I ever heard about it.”

Read the rest of it there. 

Corey Johnson's Continuing Deceptions

CD 3 candidate Corey Johnson misrepresents his role in developing affordable housing in Brooklyn, repeatedly taking credit for a project that not only has no affordable housing: it has no housing at all.

Last month, City Council Watch broke the story of Corey Johnson’s work for real estate developer GFI, which he had scrubbed from his record.  In response, Johnson has changed his campaign website, adding some information about his work history and his present employment:

[…serving] at GFI Development Company on community outreach on two hotel projects in Manhattan and an affordable housing related project in Brooklyn. Corey currently works part-time in LGBT marketing at the Sydell Group.

The “affordable housing related project” Johnson refers to is 470 Vanderbilt Avenue, in Fort Greene.  The building, a former tire factory which was at one point supposed to house tech companies, stood in disuse before GFI bought it in 2008 with plans to rehab the building as mixed-use residential and commercial space, ideally capturing a major City agency as a long-term tenant.

As part of the deal to allow GFI to build out the structure and sign the Human Resources Agency to a 20-year lease, the company agreed to build a 350-unit residential building on the site of the building’s parking lot.  The company, after negotiations with local Council Member Letitia James, agreed to include 90 affordable units, more than the usual 20% allowance in such projects.

Corey Johnson worked for the GFI development team at 470 Vanderbilt, and at a West Village community forum on June 19, he made a strong case for the good work he and GFI did in increasing the stock of affordable housing in Brooklyn.  Video was taken of his speech, and we have transcribed his comments:

One more thing, to be fully transparent:  the same company that built that hotel on 29th and Broadway, they were going to do a residential building in Fort Greene in Brooklyn, on a former manufacturing lot.  They asked me to come in and work with the local community board in Fort Greene, and the local Council Member, to make sure there was an affordable housing component to that building.  When we started off, before I came in, they were going to do 20% affordable housing.  When the rezoning was over, I got them up to 26% affordable housing, and maximized the number of two-bedrooms, for people in the community that needed affordable housing.

Sounds great!  Between this impassioned and detailed description of all the affordable two-bedroom apartments Corey Johnson fought to build, and his discussion of the project on his website, who can deny that Corey Johnson and GFI are a force for good?  As he says, he single-handedly pushed GFI to increase the amount of affordable housing they were going to build.

The only problem is that none of the housing was ever built.  470 Vanderbilt is an office building.  Nobody lives there, and nobody can live there, because the entire lot, including the part where the residential units were to be built, was zoned as commercial real estate by GFI in 2011, while Johnson was still employed by the company.

Corey Johnson hedged the impact of his work on 470 Vanderbilt when, on his campaign website, he speaks of an “affordable housing related project.”  But when he spoke at the community forum he  lost control of what he was saying: he takes full credit for plans that were never realized.  The two-bedrooms that he is bragging about having built “for people in the community” do not exist. 

We spoke to Council Member James about what happened to the affordable housing component of the 470 Vanderbilt project.  She commented about the problem of getting developers to commit to actually building what they promise to build, and noted that this problem is endemic to the land use process in New York City generally.

Regarding 470 Vanderbilt, CM James said, “I pushed very hard to get affordable housing established in that project. Corey was part of the development team, and he may have negotiated behind the scenes.  I don’t know the extent of his work on the project.  However, unfortunately, the lot is still a parking lot.”

So, according to the council member with whom Corey Johnson claims to have worked to build more affordable housing, his involvement was vague at best, and James has no specific recollection of his participation. 

We thought that Corey Johnson was slightly deceptive when he tried to deflect attention from his professional association with a real estate developer, but many candidates for office massage their bios, and it isn’t necessarily a major sin.  However, we now see Johnson making public speeches where he overstates and distorts his role in land use negotiations, and furthermore, brags passionately about fantasy residential developments that were never built, as though people are actually living in them!

Corey Johnson builds castles in air and is irate when his good faith is challenged.  We have heard a lot of grandiose megalomaniacal politicians talk wildly about their achievements, but they usually take credit for things that actually exist. Johnson appears to be an utter fabulist, an egoist with scant regard for reality, pointing at a barren lot and waving at all the happy people he has housed there.

District 3: Corey Johnson's Secret Life

The race to succeed Christine Quinn in the 3rd Council District, covering the west side of Manhattan roughly from Canal Street to Central Park, is shaping up to be a battle between 2009 Council contender Yetta Kurland and Community Board 4 Chair Corey Johnson.

Yetta Kurland has a civil rights law practice and, until recently, her own radio talk show.  She incurred the undying enmity of CM Quinn in 2009 when she ran against her in the primary and, to the Speaker’s embarrassment, won more than 30% of the vote.  Coupled with Kurland’s vociferous opposition to the Quinn-approved closing of St. Vincent’s Hospital, Christine Quinn initiated a vendetta against Kurland, waging a virtual “Anybody but Yetta” campaign that has worked for the benefit of her rival, Corey Johnson, “the youngest” chair of a community board.  Quinn’s influence has won Johnson the support of the local clubs, local political endorsements and some labor backing.

Johnson boasts a long resume of accomplishment.  To wit:

Corey is also a Director on the Hudson Yards Development Corporation, a Member of the Hudson Yards Community Advisory Committee, a Member of the Moynihan Station Community Advisory Committee, a Member of the Javits Center Community Advisory Committee, a Member of the Hudson River Park Strategic Planning Task Force, a Member of the Friends of the Hudson River Park Trusts Neighborhood Improvement District Steering Committee, a Board Member of Save Chelsea, a Member of the Council of Chelsea Block Associations, a Member of the Chelsea Reform Democratic Club, a Member of the Stonewall Democratic Club of New York City, and a Member of the 100/200 West 15th Street Block Association.

What is odd about this extensive list of activities is the absence of any positions that offer remuneration, i.e. money.  Nowhere on his campaign material, nor in his interviews, nor upon repeated questioning to his campaign manager will the Corey 2013 machine explain the most primary question we all have about anyone we meet: What does he do for a living?

This is not an idle question.  Poke around on candidate websites for a little while and you will have no trouble figuring out how these people make money.  In fact, the subject is usually foregrounded, because in New York City politics it is important to have some kind of explanation for how you pay the rent, before other people reach their own conclusions.   So the wall of community service cited above becomes a screen: an act of misdirection that we are demanded to accept.  The guy is hiding something.

What it turns out he is covering up and scrubbing from his Internet presence is his work as Director of Governmental Relations and Community Affairs for GFI Development Company, beginning in July 2008.  GFI Development is the real estate development branch of GFI Group, which according to the company website “has been at the forefront of credit derivative brokerage services, leadership that we are now leveraging to help establish an active, liquid Exotic Credit Derivative market.”

Exotic credit derivatives, for those among us with short memories, are those quaint financial instruments that enable banks to make massive bets on the failure of loans, without having to actually own any of the underlying debt.  Credit derivatives caused a minor kerfuffle in the markets in late 2008.  GFI Group “handled as much as 40 percent of the credit-derivatives trades between the world's banks in 2007,” according to Bloomberg.

Well, Corey Johnson had nothing to do with any of that, of course…he worked for the real estate development arm of GFI.   And real estate development firms are wholesome, salubrious entities.  Which must be why after I asked Johnson’s campaign manger about his work there, his speaker bio at the Gay Center website was scrubbed.  (Compare here and here.)  And his LinkedIn profile was closed. 

GFI Development buys old buildings and turns them into hotels, condominiums and the like.  Corey Johnson’s job was to facilitate the political side of things, as we see in this June 2009 article detailing his advocacy on behalf of a GFI development before Community Board 2 in Brooklyn. 

In 2008, around when they hired Corey to be their front man in New York City, GFI Development bought the old Breslin Hotel, on 29th Street, which was an SRO.  Their efforts to evict or buy out the existing tenants led to a series of court battles, but eventually the Breslin gave way to the trendy Ace Hotel.  Corey Johnson had his birthday party there when it opened in 2010, and was so delighted that he even wore a tiara, according to this record of the evening.

At the time of the Ace Hotel’s opening, Corey Johnson, top lobbyist and community affairs director for GFI Development, was also Vice-Chair of Community Board 4 and Co-Chair of the CB4 Land Use Committee.  Is this a conflict of interest?  Well, it is true that the Ace Hotel at 29th and Broadway is two blocks east of CB4’s eastern boundary, so maybe not, technically.  But it clearly isn’t something Corey Johnson is proud of, or else he would mention it at least once, wouldn’t he?

Nor, it is fair to say, is Corey proud of his “community affairs” role in the cleansing of the tenants of the Breslin hotel.  Charges of mismanagement of the hotel once GFI bought it abound.  Water turned off, heat turned off, neglect of upkeep: all the usual things that happen when a developer wants to gut a property and redo it for a better class of tenant.  We know he isn’t proud of it because he doesn’t talk about it.  Nor will he specify when he left the company, which seems to have happened in 2011 at some point.

It is easy to let politicians say whatever pretty things they want to about themselves and their good works.  Corey Johnson cleans up well, but that doesn't mean he isn't dirty.